Questions are being raised about the Victorian State Government's investment in a potato manufacturing plant. 

$300 million will go towards the development of a processing plant in the state's west to supply fast food chains like KFC and Hungry Jacks with hot chips.

The Victorian Farmers Federation is welcoming the move, but says the state government needs to look at its long term investment strategy. 

Rural Editor Emily Minney spoke with President Brett Hosking about farmers concerns.

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